- Altcoins are on the way for a possible outbreak, as Bitcoin’s dominance shows signs of over -extension.
- The setting is similar to close to the 2021 cycle – is the story about to repeat itself?
Bitcoin Dominance (BTC.D) has violated an important structural threshold and exceeded the 64% level for the first time in over four years.
This upward expansion, although technically haussey, is now accompanied by a relative strength index (RSI) pressure deep in the superior territory.
Therefore, potential exhaustion suggests Bitcoin’s (BTC) Relative surprise.
Source: TradingView (BTC.D)
Structurally speaking the current setting 2021 cycle, where btc.d marked a local top when the altcoin market index bottom below 10 level, just to be followed by a sweeping rotation to Altcoins.
At Q1 2022, the Altcoin index increased over 75 years, which signaled a definitive change in market leadership and confirmed the beginning of a full-fledged alt season.
Given this background, the current dynamics can form the foreplay into a similar rotation.
Bitcoin’s strength is tested at the top
Over the past week, the total market value excluding bitcoin saw a significant increase of $ 42 billion.
This indicates that when Bitcoin dominance reached a local top, Altcoin experienced significant capital inflows.
Among the large patches altcoins, Solana (sun) Stands out and records a two -digit percentage increase on its weekly chart.
In addition, the Altcoin Market Index saw a sharp recovery and rose from 13 to 20.
This price measure reflects the 2024 cycle structure, where the index dropped to a similar low -quality in the third quarter before he rally back to 87 in early December.
Source: Blockchaincenter.net
In summary, both technical analysis and historical price measures support the probability of a 2021-style market cycle that is being developed.
If Bitcoin’s price is testing a local top While its dominance shows signs of fatigue, Solana’s 11% wave can be an early signal of capital rotating to altcoins.
As a result, an all-out altcoin season can be materialized, with a meal frame for the end of Q3 to early Q4.
Altcoins will take advantage of BTC’s fatigue?
Ambcryptos BTC.D analysis emphasizes an important bending point in the market structure.
On April 7, BTC.D closed 64%, broke against a multi -year resistance and marked the highest dominance level since the beginning of 2021.
At the same time pushed RSI over 80, which signals an over -camera regime and potential fatigue in Bitcoin’s Relative surprise.
This technical divergence was validated on April 8. Bitcoin registered a 3.65% reduction, which confirms average reversal from overheated conditions.
Source: TradingView (BTS/USDT)
According to Ambcrypto, the confluence of BTC.D’s parabolic extension to a multi -year resistance band and Bitcoin’s rejection of $ 86K macro supply zone presented an optimal capital rotation window to Altcoins.
Despite this installation, however, strategic investors did not act resolutely.
After three consecutive sessions with reduction in BTC.D, the metric was recalled and broke back over 64% over the next seven days.
Therefore, Bitcoin’s prevailing dominance strengthens.
This change in behavior signals a key tag: a prolonged high BTC.D no longer acts as a reliable predecessor for capital rotation.
Despite the technical signals, Historical trendsAnd capital inflows, the likelihood of an Altcoin season has completely subsided.
